We have sold a 30 yr old property in the name of A for 1crore. A has two sons -B & C. Now A wants to gift his two sons 2 flats and divide the money 1:2 between them. However A is told that he wil be charged 20% long term capital gains if he buys property in sons name. If he buy in his name and later transfers in their name before 3 years, then also, he will be charged. Is there a way to transfer the property in the sons names via gift or any other procedure and pay less tax. He doesnt want to wait for 3 years in case he doesnt live that long. He wants to make sure that C gets a flat registered in his name for 2/3rd share such that after A's death, B cant claim a share in that.

asked Feb 26 '11 at 13:10 by shivani071177 1456

For saving income tax arising from long term capital gains on sale of residential property, new property has to be bought in name of same person only. Else no exemption will be available.

Property can be transferred to son's name by registered Gift deed.

I am not able to find a rule which says it cannot be done before three years.

Other thing which can be done is making a registered will stating the required division pattern for property.

answered Feb 27 '11 at 12:50 by Pankaj Batra 5.2k320


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Asked: Feb 26 '11 at 13:10

Seen: 1,840 times

Last updated: Feb 27 '11 at 12:50